RBNZ Cuts Rates and Offers Dovish Guidance –and The Long End of the Bond Market Rallies!

New Zealand’s long-term yields sink and currency declines on dovish guidance

Highlights

• New Zealand’s long-term yields sink and currency declines on dovish guidance

• Recovery of lagging sectors is not enough to lift the S&P 500

• Japan’s export growth hit by tariff pressures

• GDP estimates diverge sharply across Fed district banks

Key Takeaways

• S&P 500 Slips Even While Most Stocks Rise: What stood out the most yesterday, in a sign of how the Magnificent 7 is now giving up leadership, was the fact that the cap-weighted S&P 500 sagged by -0.6%, while the equal-weighted index climbed +0.5%. This performance gap has only happened two other times since mid-April. In fact, on a down day for the overall market, 70% of the members of the S&P 500 actually advanced yesterday.